The 2023 Canada Income Tax Deadline: What You Need To Know

January 23, 2023 Andrew AdolphAudits

April 30th marks the Canada income tax deadline for filing taxes in Canada.   

For most Canadians, it’s a dreaded day of the year: the day when individuals must do a reckoning of their finances and submit their taxes to the government. Depending on the complexity of your situation, it can be a stressful and time-consuming process.

You should always file your income tax return on time, even if you cannot pay the amount owing.

What Are The Deadlines And What If I File Late?

Individuals in Canada must file their income tax returns by April 30th of each. Those who are self-employed have until June 15th as the deadline instead. If any taxes are owed, they must be paid by the original April 30th deadline or interest may be charged.

Filing Late and Paying late are NOT the same thing!!

If you cannot afford to pay, make sure you file on time anyway because the late filing penalty is a killer when compared to its cousin, “arrears interest.”

If you are late filing your taxes, the CRA will charge a late-filing penalty equal to 5% of the balance owing plus 1% of the balance owing for each full month that your return is late, to a maximum of 12 months. So if you are self-employed and miss the June 15 deadline, that will be a 6% penalty of whatever tax you owed, but could escalate to 17% if you file one year late.

If you don’t owe any tax, none of this is going to hurt you, but if you are self-employed, you probably owe tax, so to avoid a 17% surcharge on your tax bill, file on time even if you make a payment.

OK, That’s The Penalty. What’s The Interest Charged On?

Interest is charged on the tax amount owing PLUS any late filing penalty, beginning the day the tax was due, which for most people is May 1st. The interest rate fluctuates and is currently 8%.

How To Get Help

If you’re feeling overwhelmed by the Canada income tax deadline, you may want to consider hiring a tax accountant. A tax accountant can help you understand your taxes, provide advice on how to best manage your finances, and guide you through the process of filing your taxes. They can also ensure that you take advantage of all the deductions and credits available to you and help you avoid penalties and interest charges.

The Bottom Line

No matter what your situation is, it’s important to make sure you are prepared for the Canada income tax deadline. Get organized, understand what deductions and credits are available to you, and make sure you file your taxes on time. Don’t forget that if you owe money to the CRA, you must pay by the due date, or the CRA can charge interest and penalties.

Being behind on taxes is never a good thing. I know the anxiety that most people feel when they have unpaid taxes in their closet. If you need some help, take advantage of some of the resources on my blog, check out the CRA website, or book a free consultation with me.

Andrew Adolph

Andrew Adolph is a CPA and former CRA auditor with 25 Years of experience. He helps businesses to not par any more in sales taxs than the law says they must and acts as an advocate for you if you are being audited, so you can fous on your business.